1. CHANGE MANAGEMENT

2. Change is important for individual, corporate,
institutions and even the country to adapt itself
to changing environment.
•Change is the key to success in today’s time.
• Today, change is not the exception but a steady
ongoing process.

3. DEFINITION OF CHANGE MANAGEMENT
Change Management means to plan, initiate,
realize, control and finally stabilize change
processes on both corporate and personal level.
• Change may cover such diverse problems strategic
direction or personal development programs for
staff.
• Change is the continuous adoption of corporate
strategies and structures to changing external
conditions.

4. •Change comprises both, revolutionary one-off
projects and evolutionary transformations.
• We find that most people have negative
attitudes and perceptions towards change.
•They have fears of losing their job, their status
or their social security, or they are afraid of a
higher workload.

5. • In many cases, first effects of change on employees, leaders, and
on performance levels are negative.
•These effects include fears, stress, frustration and denial of
change.
•Most employees tend to react with resistance to change rather
than seeing change as a chance to initiate improvements.
•They are afraid of losing something, because they have
incomplete information on how the change processes will effect
their personal situation in terms of tasks, workload, or
responsibilities

6. •Managers need to keep in mind those negative
side-effects of change initiatives in order to achieve
the expected positive results.
• The success of change projects depends on the
organization’s ability to make all their employees
participate in the change process in one way or the
other.

7. Dynamics of Change
• According to Alvion Toffler the man’s
existence is 50,000 yrs. Old.
• If divided into period of 62 years (Life
time) than man’s existence is 800 life time.
• From the total of 800 life times 650 life
times man has spent in caves.

8. Dynamics of Change
• Only during 70 life times man has been
communicating and passing knowledge
from the life time to another.
• During the last six life times man has been
possible to measure time with precision.

9. Time Skip
• Present life time man has seen
automation, computerization; space
research; nuclear advancement, satellite,
microwaves and internet applications.
• Man is caught in what might be called
“Time Skip”.
• In fact “Cultural Shock” has taken place in
Social, Political; Scientific and cultural
environments.

10. Time Skip
• Future shock is the premautre arrival of
the future.
• Future shock is a time phenomenon, a
product of greatly accelerate rate of
change in the global society.

11. • The need to replace complacency with a desire to
continually improve goes back to the early days of
the modern management era.
• This idea has been accelerated by the Total
Quality Management (TQM) movement.
• However, things are moving much more rapidly in
the 21st century, and in this environment,
incremental transformation is not enough.

12. THE SEVEN PHASES OF CHANGE

13. PerceivedCompetence
Time
1. Shock
2. Refusal
3. Rational
Understanding
4. Emotional
Acceptance
5. Exercising
6. Realisation
7. Integration
THE SEVEN PHASES OF CHANGE

14. THE SEVEN PHASES OF CHANGE
1. Shock and Surprise:- Confrontation with unexpected
situations. This can happen ‘by accident’ (e.g. losses
in particular business units) or planned events (e.g.
workshops for personal development and team
performance improvement.)
2. Denial and Refusal:- People activate values as
support for their conviction that change is not
necessary.

15. THE SEVEN PHASES OF CHANGE
3. Rational Understanding:- People realize the need for
change.
- According to this insight, their perceived competence
decreases again.
- People focus on finding short term solutions, they
only cure symptoms.
- There is no willingness to change own patterns of
behavior.

16. THE SEVEN PHASES OF CHANGE
4. Emotional Acceptance:- This phase, which is also
called ‘crisis’ is the most important one.
-Only if management succeeds to create a willingness
for changing values, beliefs, and behaviors, the
organization will be able to exploit their real potentials.
5. Exercising and Learning:- The new acceptance of
change creates a new willingness for learning.
-People start to try new behaviors and processes.
- They will experience success and failure during this
phase.

17. THE SEVEN PHASES OF CHANGE
6. Realization:- People gather more information by
learning and exercising.
-This knowledge has a feedback-effect.
-People understand which behavior is effective in which
situation.
7. Integration:- People totally integrate their newly
acquired patterns of thinking and acting.
- The new behaviors become routine.

18. THE PSYCHOLOGY OF RESISTANCE TO CHANGE

19. THE PSYCHOLOGY OF RESISTANCE TO CHANGE
• Unless the change being proposed strengthens in a
visible and unambiguous way the psychological
security of the people is affected – change will be
resisted.
•Most of us, being human, feel our security
threatened from time to time.
• The extent to which we feel secure is mainly
dependent on our cumulative experience since birth.

20. • All of us at one time or another have had the
experience that, despite the planning, hard work and
careful thought we have put into a new scheme,
people won’t go along with it.
• This is often a source of disappointment when we
find that our brilliant ideas and logical analysis are
just simply rejected.
• Change, however is more than an intellectual
process.
• It is a psychological process as well.
THE PSYCHOLOGY OF RESISTANCE TO CHANGE

21. Factors that determine how an individual might feel about a
change that affects him.
- Basic predisposition to change (derived from birth
experiences, early feeding and weaning toilet training,
sibling rivalries etc.)
- Personal sense of security (dependent on individual
personality and current circumstances such as financial and
marital status, etc.)
THE PSYCHOLOGY OF RESISTANCE TO CHANGE

22. - Prevailing cultural beliefs (relating to a particular country, or
community, class trade or even work groups)
- Extent of trust and loyalty (resulting from past and present
relationships with management, union and work groups.)
- Objectives historic events (including the nature of after-
effects of past changes, natural and regional patterns of
unemployment, labor mobility, government interventions,
etc.)
THE PSYCHOLOGY OF RESISTANCE TO CHANGE

23. -Specific apprehensions and expectations about the particular
change (relating the individual to the content and method of the
change, to the work group and to the organization as a whole).
• Each situation and each individual tend to be unique and hence
it is difficult to predict how a particular change will be regarded
by those affected.
• Conditions for man’s psychological readiness to change.
THE PSYCHOLOGY OF RESISTANCE TO CHANGE

24. • The factors that influence an individual’s attitude towards a
change, the manner of change is the one most under the
control of the change catalyst, manager, consultant, or
whoever is introducing the change.
• Some general principles of reducing resistance to changes
are briefly considered under three types of heading viz. Who
brings the change? What kind of change? And procedures in
instituting change?
THE PSYCHOLOGY OF RESISTANCE TO CHANGE

25. PROCEDURES IN INSTITUTING CHANGE

26. INSTITUTING CHANGE
Resistance will be reduced:
• If participants have joined in diagnostic efforts leading them
to agree on what the basic problem is and to feel its
importance.
• If the project is adopted by consensus following group
discussion.
• If the parties involved can see both sides of the question and
recognize valid objections and take steps to relieve
unnecessary fears.

27. INSTITUTING CHANGE
• If it is recognized that innovations are likely to be
misunderstood and misinterpreted, and if provision is made
for feedback of views on the project and any further
clarification.
• If participants can begin to develop acceptance of each other
and so experience support, trust and confidence in their
relations with one another.
• If the project is kept open to revision and reconsideration if
experience indicates that a change in direction or emphasis
would be desirable.

28. • Managers need to know in which phase they have to
expect what types of situations and problems.
• Most successful organizations are those that are able
to adjust themselves to new conditions quickly.
• This requires planned learning processes that lead to
improved organizational effectiveness.
• Normally, people perceive change processes in seven
typical stages.

29. Resistance will be less;
• If managers, supervisors, union leaders and other
key people involved in the organization feel that a
programme of planned change is their own- not one
devised and operated by outsiders.
• The way in which the change is introduced.
• If any programme started clearly has the whole-
hearted support from the people with the groups
concerned.

30. Resistance will be less:
• If participants in any project see the change as
reducing rather than increasing their current
burdens;
• If the project accords with values and ideals which
have long been acknowledged by the participants;
• If the programme offers the kind of new experience
that interests participants;
• If participants feel that their autonomy and security
is to threatened.

31. INDIVIDUAL EFFECTS OF CHANGE

32. • People exposed to war or disaster may develop a nervous
breakdown, people with exposed to rapid changes of modern
life may develop state of helplessness and inadequacy.
• The ‘Life Change Scale’ is a psychological tool which measure
the amount of change experienced by a person over a given
time interval.
• The ‘Life change’ questionnaire asks people to mark on a list
which important changes they recently underwent: move to
new home, new job, marriage, divorce travel promotion etc.

33. • The total score for a person is calculated as the sum of all
changes that the person experienced multiplied by their
relative weights.
• Using this scale, it was shown that individuals with high
life change scores are significantly more likely to fall ill.
• It turned out that illness correlates with all changes,
positive as well as negative.

34. LEADERSHIP
AND
CHANGE

35. • Organizations must undertake organization-wide
change to evolve to a different level in their life
cycle, e.g., going from a highly reactive,
entrepreneurial organization to more stable and
planned development.

36. LEADERSHIP – NEW ROLELEADERSHIP – NEW ROLE
• Change is the biggest challenge for the leader in the
new millennium.
• Keeping pace with the complexity and the rate of
change, have become the most critical factors for the
organizations today.

37. LEADERSHIP – NEW ROLELEADERSHIP – NEW ROLE
• Millennium leaders will be known –
- Less for what they say, and more for what they
deliver.
- Less by the goals they set, and more by the mindsets
they build.
- Less by what they control, and more by what they
shape.

38. LEADERSHIP – NEW ROLELEADERSHIP – NEW ROLE
• Millennium leaders will be known –
- More for Vision, Change leader and Knowledge
management.
- More for Process they create; Integrative Thinking
and Innovation.
- More for keeping pace with complexity and Speed –
expectation @ of Speed of Thought.

39. LEADERSHIP – WINNERSLEADERSHIP – WINNERS
• The only survivors of this onslaught will be
corporations headed by leaders - endowed
with the ability to see what lies ahead.
• To create necessary resilience to deal with the
future.

40. •The road to leadership is a transforming
journey for anyone who pursues it
diligently and patiently.
• Leadership is more a function of the heart
than mind.

41. Effective leadership has become more critical
because of –
•The rapidly changing socio, political and business
environment.
•Coping with complexity and coping with change.

42. TYPES OF CHANGES
There are two types of changes:
• Organizational Development:- It is more
gradual and evolutionary approach to change.
-It bases on the assumption that it is possible to
align corporate objectives with the individual
employee’s objectives.
- In practice, however, this will rarely be
possible.

43. • Reengineering:- It is a corporate
transformation or business transformation.
- It is the more radical form of change
management as it challenges all elements of
processes or structures that have evolved over
time.

44. Quantum Leaps- The explanation
• A MINI LEAP is consistent with the notion of
continuous improvement. It means from point A
to point B
• A MEDI LEAP is more ambitious. It means skipping
one iteration of progress. Moving directly from
point A to Point C
• A MEGA LEAP OR QUAMTUM LEAP is the most
ambitious of all. It means skipping two iterations
of progress or improvement. Moving from Point A
to Point D

45. The Quantum Leapers
Continuous Improvement
aKa The MINI LEAP
A B C D
THE MEDI- LEAP
A B C D
THE MEGA LEAP
or Quantum Leap
A B C D
Giant Steps are taken that jump over two or more
generations of progress

46. Exemplification
• A good case study of a Quantum Leaper is Syntel,
an electronics manufacturer. When Companies
were producing chips that had capacity from 4K
to 64K, Syntel produced chip with a whopping
capacity of 256K memory.
• But Quantum Leap is not always possible. There
are times when it is necessary to move slowly at
first, restricting to medi leaps or even mini leaps

47. Attributes of Quantum Leapers
They Institute a Climate of Innovation
• Quantum Leap companies encourage employees at all
levels to speak up about any and all matters
concerning the organization
• The best- ideas received come from non-
professionals who see things from a different view
point
• To develop this innovative atmosphere, these
organizations use both formal and informal
approaches

48. • ‘Idea- Meetings’ are another form of program that
generates ideas and cultivates creativity. Participants are
told the subject of the meeting beforehand and are
expected to get at least one idea related to it.
• Quantum Leapers conduct brainstorming sessions to
generate ideas and encourage participants to express any
and all ideas that emerge. They use the psychological
principle called “triggering”
• When suggestions are carefully considered with rapid
feedback, the programs not only succeed but add to the
culture of innovation

49. Benchmark
• Quantum Leapers are the first to admit they do not
have all the answers and are on the Learning Curve.
• They are always in the process of seeking out ideas
from other organizations who have faced similar
situations and benchmarking against best practices.

50. Foster an Entrepreneurial Spirit
• Entrepreneuring is not limited to small, independent environments.
Large organizations encourage this and is called “Intrapreneuring”.
The intrapreneur may be a creator, inventor or dreamer, but he
figures out ways to turn an idea into a profitable reality.
• The following should be the culture traits to support:
– Listen to anyone with an original idea
– Encourage; don’t nitpick. Let people run with an idea
– Hire good people and leave them alone
– If you put fences around people, you get sheep. Give people the
room they need
– Encourage experimental doodling, give it a try- and quick

51. Willing to take Risks
• The Quantum Leapers do not stay inside
the safe shell of complacency.
• They are willing to take risks and move
ahead
• Risk taking, in certain cases, is part of the
Corporate Culture of all Quantum Leapers

52. Anticipate Trends
• Quantum Leapers are proactive and work on the
future trends. The Software Industry is full of such
examples:
• Steve Jobs anticipated the demand for personal
computers with the Apple Computer and later
Macintosh. Bill Gates saw the trend towards packaged
software. The founders of Amazon.com revolutionized
the book selling business.
• Such people are called trend- setters

53. Thinking two or three moves ahead
• Like good chess players, the Exponential
Manager plans several steps ahead before
making a move.
• To make a Quantum Leap, one must be able
to anticipate what the effect will be on variety
of factors.

54. Believe in Empowerment
• Empowerment is giving of the power held by a manager to
those being managed. In an empowered environment, the
supervisor brings the workers together and says: “Here is our
project, let’s determine how it should be done”
• There are 3 major advantages to this:
– Ideas- People who work on the job can provide deeper insights to
a situation
– Synergy- When people work together in developing a project, an
interrelationship develops among them that leads to
collaborative efforts to achieve success
– Ownership- People are committed to success when they are
involved in designing of the project

55. CULTURAL CHANGE

56. • Before an organizational culture can be changed, it
must be analyzed and assessed.
• It is necessary to understand the culture and
determine what problems exist and how seriously
they affect productivity, quality of product or service,
morale of the workers and the overall efficacy of the
organization.
• Perception is Reality in the minds of the perceiver

57. •It creates distinction between one organization
& the other.
•It conveys a sense of identity for organization
members.
•It facilitates the generation of commitments to
something larger than one’s individual self-
interest.
•It enhances the stability of the social system.
WHAT DOES CULTURE DO

58. Need for new organizational culture
• Organizations are restructuring, downsizing and
outsourcing, employee morale has fallen to new
depths.
• The unconditional loyalty and dedication of employees
who looked upon their jobs as careers and their
employment as relatively secure is replaced in many
companies with uncertainty .

59. A new organizational culture must be
developed to overcome barriers to change
and renew - an attitude of commitment
and cooperation.

60. DIFFICULT Y IN ACCOMPLISHING
ORGANIZATION CHANGE
• There are strong resistances to change, people
are afraid of the unknown.
• Many people think things are already just fine
and don’t understand the need for change.

61. WAYS FOR CARRYING ORGANIZATION
CHANGE
• Successful change must involve top management,
including the board and chief executive.
• Usually there’s a champion who initially instigates the
change by being visionary, persuasive and consistent.
• A change agent role is usually responsible to translate
the vision to a realistic plan and carry out the plan.

62. WAYS FOR CARRYING ORGANIZATION
CHANGE
• Change is usually best carried out as a team- wide
effort.
• Communications about the change should be frequent
and with all organization members.
• To sustain change, the structures of the organization
itself should be modified, including strategic plans,
policies and procedures.

63. What is “Revitalising People”
• Revitalising People entails
– Change of Attitude
– “Mindset Change”
• But can we teach Old hays…new Tricks??

64. It is observed that:
• Some Individuals with the same attitude and
personality traits, can behave differently with
different context.
• To change the behavior, the context has to be
changed.

65. What does the Organisation want from
it’s People?
• The Organisation wants it’s People to:
– Collaborate
– Share
– Help each other
– Feel a sense of commitment
– Take initiative
– Learn continuously
– Bring benefits of learning
– Support company success

66. Overall, the point is simple: If you wish
to see Initiative, Collaboration,
Commitment and Learning, the
Challenge is to Change/ Create the right
“Smell of the Place” -Culture

67. Potential dysfunctional aspects of culture
• Barriers to change
• Barriers of diversity
• Barriers to acquisitions
CULTURE AS LIABILITY

68. - Sensitive to ones own culture and also to other’s culture
- Building relationships quickly, generating collaborations.
- Ability to work with cross functional teams
- Humility to learn and adapt
CULTURE AND RELATIONSHIP

69. GLOBAL MANAGER
According to Andrew Kakabadse:
• There are two views about global manager
a. Global manager is a manager
b. They are entirely different breed of executives
The stronger view is they are different breed of executives
What make a GLOBAL MANAGER exceptional -that he can think
across the cultural boundaries.

70. GLOBAL MANAGER

71. EMPLOYEE ENGAGEMENT
SURVEY

72. GALLUP SURVEY
• It is a feedback system tied to bottom line – sales
growth, Productivity and Customer Loyalty for the
employees that would identify and measure elements of
worker engagement.
• Studies have revealed that:
- Employee actively engaged in job role: 29%
- Employees not engaged in job role : 54%
- Employees disengaged in job role : 17%

73. Questions Your Rating
Q01 I know what is expected of me at work.
Q02 I have the materials and equipment to do my work right.
Q03 At work, I have the opportunity to do what I do best every day.
Q04
In the last seven days, I have received recognition or praise for doing good
work.
Q05 My supervisor, or someone at work, seems to care about me as a person.
Q06 There is someone at work who encourages my development.
Q07 At work, my opinions seem to count.
Q08 The mission or purpose of my organization makes me feel my job is important.
Q09 My associates or fellow employees are committed to doing quality work.
Q10 I have a best friend at work.
Q11 In the last six months, someone at work has talked to me about my progress.
Q12 This last year, I have had opportunities to learn and grow.
Employee Engagement Effectiveness Index
(5=Strongly Agree, 4=Agree, 3= Neither Agree nor Disagree, 2=Disagree,1=Strongly Disagree)

74. LEADERSHIP SURVEY

75. Questions Your Rating
Q01 My manager/supervisor demonstrates competence in his or her job.
Q02 My manager/supervisor treats everyone fairly (i.e., plays no favorites).
Q03 My manager/supervisor creates a motivating and supportive work climate.
Q04
My manager/supervisor represents my needs, ideas and suggestions to his/her
manager.
Q05
My manager/supervisor takes an interest in my professional growth and
development.
Q06
My manager/supervisor involves me in decision making, problem solving and
planning processes.
Q07 My manager/supervisor creates a high performance and collaborative work team.
Q08
I have the opportunity to interact with Management above my immediate
supervisor.
Leadership Effectiveness Index
(5=Strongly Agree, 4=Agree, 3= Neither Agree nor Disagree, 2=Disagree, 1=Strongly Disagree)

76. The score of Great Workplace Award should have min. score 4.5
At the same time your engagement is very high to the company.
RESULT
EMPLOYEMENT ENGAGEMENT SURVEY
LEADERSHIP SURVEY
The Great Manager should have minimum score 4.5

77. Strategic Management andStrategic Management and
Strategic CompetitivenessStrategic Competitiveness

78. Corporate Strategy
Directional Strategy:
– Orientation toward growth
• Expand, cut back, status quo?
• Concentrate within current industry, diversify into
other industries?
• Growth and expansion through internal
development or acquisitions, mergers, or strategic
alliances?

79. Corporate Strategy
Growth Strategies:
– Most widely pursued strategies
– External mechanisms:
• Mergers
– Transaction involving two or more firms in which
stock is exchanged but only one firm survives.
• Acquisition
– Purchase of a firm that is absorbed as an operating
subsidiary of the acquiring firm.
• Strategic Alliance
– Partnership of two or more firms to achieve
strategically significant objectives that are mutually
beneficial.

80. Corporate Strategy
International
Entry
Options
Exporting
Licensing
Franchising
Joint Ventures
Acquisitions
Green-Field Development
Production Sharing
Turnkey Operations
BOT Concept
Management Contracts

81. Corporate Strategy
Portfolio Analysis
– How much of our time and money should we
spend on our best products to ensure that
they continue to be successful?
– How much of our time and money should we
spend developing new costly products, most
of which will never be successful?

82. Corporate Strategy
Portfolio Analysis
BCG (Boston Consulting Group) Matrix
– Product life cycle and funding
decisions
• Question marks
• Stars
• Cash cows
• Dogs

83. Corporate Strategy
• Directional Strategy:
Orientation toward growth -
• Expand, cut back, status quo?
• Concentrate within current industry, diversify into
other industries?
• Growth and expansion through internal development
or Acquisitions, Mergers or Strategic Alliances?

84. GROWTH STRATEGIES
Concentration
Current Product line in one industry
 Vertical Growth
 Vertical Integration
•Full Integration
•Taper Integration
•Quasi Integration
 Backward Integration
 Forward Integration
Horizontal Growth
Horizontal Integration
Diversification
Other Product lines in other industries
Concentric
•Growth into related industry
•Search for Synergy
Conglomerate
•Growth into unrelated industry
•Concerned with Financial consideration
RETRENCHMENT
STRATEGIES
Turnaround
Captive Company
Sell - Out / Divestment
Bankruptcy / Liquidation
STABILITY STRATEGIES
Pause / Proceed with
Caution
No Change
Profit
Directional Strategy

85. Competitive success is transient...unless care is
taken to preserve competitive position
Only 16 of the 100 largest U.S. companies at the
start of the 20th century are still identifiable
today!
In a recent year, 44,367 businesses filed for
bankruptcy and many more U.S. businesses failed
Challenge of Strategic Management

86. • Rapid technological changes
• Rapid technology diffusions
• Dramatic changes in information
and communication technologies
• Increasing importance of
knowledge
Fundamental nature of
competition is changing
The pace of
change is
relentless....
and increasing
Traditional
industry
boundaries are
blurring, such
as...
• Computers
• Telecommunications
21st Century Competitive Landscape21st Century Competitive Landscape

87. The global economy is
changing
• People, goods, services and
ideas move freely across
geographic boundaries
• New opportunities emerge in
multiple global markets
• Markets and industries become
more internationalized
Traditional sources of
competitive advantage no
longer guarantee success
New keys to success
include:
• Flexibility
• Innovation
• Speed
• Integration
21st Century Competitive Landscape21st Century Competitive Landscape